Important Key Points about Banking Ombudsman Scheme 2006

"BANKING OMBUDSMAN SCHEME"

For SBI PO-RRBs-IBPS PO/ Clerk

Introduction:

RBI notified the Banking Ombudsman Scheme 2006 on 26^th December, 2005, in partial modification of its Banking Ombudsman Scheme 2002 to enlarge the extent and scope of the authority and functions of the Ombudsman, u/s 35A of Banking Regulation Act, 1949. The scheme that came into force i.e. 1^st January, 2006 covers all Commercial Banks, Regional Rural Banks and scheduled Primary Co-operative Banks.

Objectives:

To facilitate the resolution of complaints relating to Banking services through conciliation and mediation between the bank and the aggrieved parties or by passing an Award.

Who Can Be Ombudsman?

CGM/GM of RBI (not exceeding 3years at a time).The cost is borne by RBI.

Issues:

• Need more Banking Ombudsman (BOs)
• Net banking Frauds

Who Can File a Complaint?

A person himself/his/her authorized representative (other than an advocate) can file the compliant on paper or through electronic media (E-mail) or forwarded by RBI or Central Government.

Jurisdiction:

For Credit card, the jurisdiction is with reference to Ombudsman having Justification over billing address of the card holder. For other accounts, it is as per location of the branch.

Type of Complaints:

• Non-payment or Inordinate delay in the payment or collection of drafts, cheques, bills etc.
• Non- adherence to prescribed working hours (i.e. 10am to 5pm)
• Non-disbursement or delay in disbursement of pension to the extent the grievance can be attributed to the action on the part of the bank concerned, but not with regard to its employees.
• Non-payment or delay in payment of inward remittances.
• Non- acceptance, without sufficient cause, of coins tendered and for charging of commission for the service;
• Failure to issue or delay in issue, of drafts cheques or pay orders;
• Failure to honor guarantee or letter of credit commitments;
• Non- adherence by the banks or its subsidiaries to the instructions of Reserve Bank on Debit Cards/ATM/ Credit Card operation;
• Delays in receipt of export proceeds, handling of export bills, collection of bills etc., for exporters provided the said complaints pertain to the bank's operations in India.

 Punishments:

• Banking Ombudsman can order the bank to compensate the actual money loss or Rs. 10lakh.
• In Case of Credit card related cases, Banking Ombudsman can order the bank to pay additional fines (up to Rs. 1lakh) for the mental harassment to the customer.

Basic Information:

1. Under this scheme all scheduled Commercial Banks, Scheduled Primary Co-operative Banks and Regional Rural Banks are covered.
2. Banking Ombudsman is appointed by Reserve Bank of India (RBI).
3. There are 16 regional offices of Banking Ombudsman in India. The offices are mostly situated at State Capitals.
4. Around 15 Banking Ombudsman has been appointed.